Today's Big Stories

Pravin Gordhan 'puts Eskom in its place' over renewable energy contracts

On Wednesday, Finance Minister Pravin Gordhan said that Eskom CEO Brian Molefe is not qualified to make policy statements.

This follows Eskom's announcement last week, that it would not sign new contracts to procure electricity from independent power producers (IPPs).

Business Day Deputy Editor Carol Paton says that Gordhan seems to be backing the programme to procure renewable energy from IPPs.

According to Paton, Gordhan was implying that only government has the authoritative powers over IPP policies.

So no matter what Eskom says, he's trying to put them in their place and say it is not for [them] to decide what the country's energy policy should be.

Carol Paton, Deputy Editor at the Business Day

Paton explains that the power utility does not directly negotiate with IPPs, but rather liaises through the Department of Energy.

She add that there are several other political issues at play, including the controversial nuclear energy deal.

Listen to the full conversation from The Midday Report with Stephen Grootes:

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